Method for transmitting a code

ABSTRACT

The present invention relates to a method for transmitting a code to a user in which the user transmits his or her financial account identifier information to a code allocation unit  3 , the code allocation unit  3  transfers an amount of money to the financial institution  5  specified by the user and/or transfers an amount of money from the financial institution  5  specified by the user, thereby submitting the account identifier information and the code to be transmitted as additional information with this transfer and/or this debit, and the financial institution  5  forwards a receipt for the transfer and/or debit together with the additional information to the user.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation application of U.S. Ser. No.10/018,237 filed on Jun. 24, 2002, now U.S. Pat. No. 8,024,260 entitled“Method For Transmitting a Code,” which is a U.S. National Stage Filingunder 35 U.S.C. 371 from International Patent Application No.PCT/EP00/05359 filed on Jun. 9, 2000, and published as WO 00/77754 A1 onDec. 21, 2000, which in turn claims the priority benefit of GermanApplication No. 199 26 472.4 filed on Oct. 6, 1999, the entire contentof each application being incorporated herein by reference.

The present invention relates to a method for transmitting a code to auser.

Traditionally, companies offering services or selling goods are used toissuing personal codes to users who intend to buy or use the goods orservices in order to facilitate identification of the users with thecompany. Furthermore, financial institutions, for example, are used toissuing personal identification numbers (PINs) to their customers toenable them to withdraw money from ATMs, conduct financial transactions,standing orders or use other services through a computer. Whenever auser initiates the first contact to such a company there is the problemof transmitting the personal code to him or her securely with minimalexpense. Traditionally, personal codes will be handed over personally orsent by mail. Although both transmission methods are relatively secure,the expense associated with it is relatively high. It is eithernecessary to prepare a special tamper-proof letter, thereby ensuringthat no third party can get information about the code without openingthe letter, or the user has to show up in person with a companyrepresentative and submit a means of identification, for example hispassport, in order to have his or her identity checked. Furthermore,companies, especially those offering online services, are used totransmitting personal codes via e-mail. Although this transmissionmethod is very simple, it is also very insecure.

Once a personal code has been transmitted to a user, there is theadditional problem of how to conduct future payment transactions withthe user when he or she is buying or using the company's goods orservices. The so-called direct debit method has been proven to beespecially advantageous for conducting payment transactions. With thismethod, the user agrees in advance to have amounts of money transferredfrom his or her bank corresponding to the goods or services bought orused, thereby eliminating the need to explicitly confirm every singletransaction in the future. With this method, the company submits theuser's financial account identifier and the amount to be transferred tothe user's financial institution. This can be especially simply effectedby an electronic storage media, for example a diskette, or by an onlineremote data connection. The financial institution verifies the financialaccount identifier information and, after positive verification,transfers the respective amount of money from the user's account to thecompany's account. For the company conducting this direct debit method,there is the problem of guaranteeing that all data submitted to thefinancial institution are correct. For example, if the financial accountidentifier information cannot be assigned to a valid bank account, thefinancial institution will reject the transaction and levy relativelyhigh charges to the company. Consequently, with new users, there is theadded problem of verifying financial account identifier informationalong with transmitting personal codes in order to prevent problems withfuture payment transactions. Such a verification is very expensive anddifficult, especially for a company that neither has personal contactwith a new user nor, for example, any means of physically checking hisor her credit card or ATM card at least shortly. Consequently, companiesare used to omitting verification of financial account identifierinformation provided by new users, thereby disadvantageously incurringthe risk of fraud and invalid transactions.

It is therefore the object of the present invention to provide a methodfor transmitting a code to a user which is secure, causes minimalexpense and, therefore, costs associated with the transmission, andadditionally provides a means for verifying financial account identifierinformation provided by the user.

This object is accomplished by the method according to claim 1, wherebyadvantageous modifications can be seen from the dependent claims.

According to the invention, the user transmits his or her financialaccount identifier information to a code allocation unit. Said codeallocation unit transfers an amount of money to the financialinstitution specified by the user and/or transfers an amount of moneyfrom the financial institution specified by the user, thereby submittingthe account identifier information and the code to be transmitted asadditional information with this transfer and/or this debit. Afterhaving executed the transfer and/or the debit, the financial institutionforwards a receipt for the transfer and/or debit together with theadditional information to the user.

Advantageously, the invention provides a very secure transmissionmethod. The secrecy of the transmission channel is guaranteed by thefinancial institution, as transaction details of the transfer or debitwill not be divulged to any person outside a select group ofconfidential staff and, furthermore, only the legitimate user has accessto his or her transfer or debit transaction receipts.

Furthermore, the method according to the invention provides a proof thatthe code has been transmitted to the account specified by the financialaccount identifier information through the additional information withthe transfer or debit. The financial institution thus acts as anindependent third party confirming the transaction. Consequently, theuser will later not be able to repudiate having received the code. Thus,the transmission method according to the invention is almost equivalentto a registered letter, but less expensive and causes less effort.

In an advantageous embodiment of the invention, a verification unit ofthe financial institution, prior to executing the transfer and/or debitverifies the transfer and/or debit, data submitted by the allocationunit as to whether they can be assigned to a valid financial account ofthe user. In the case of a positive verification, the financialinstitution executes the transfer and/or debit initiated by theallocation unit. This measure ensures that the transfer and/or debitwill not be executed unless there is a valid account of the user withthe financial institution. For example, if his or her account istemporarily closed or non-existent, an invalid transaction can beavoided. Consequently, the method according to the invention obviatesthe need for separately verifying financial account identifierinformation or incurring future costs associated with invalid directdebit transactions.

Advantageously, in the case the verification of the financial accountidentifier information is negative, the verification unit of thefinancial institution transmits this result to the code allocation unit.In the code allocation unit, it can thus be decided whether to refrainfrom issuing a personal code to the user but rather contact him or herthrough another communication channel, if necessary.

Advantageously, the user furthermore submits identification data to thecode allocation unit. These identification data are being submittedtogether with the account identifier information when initiating thetransfer and/or debit. The verification unit verifies the identificationdata in combination with the account identifier information. Thus, notonly the principal validity of the account identifier information can beverified, but also whether the account identifier information matchesthe specified user.

The transmission of the identification data and/or financial accountidentifier information of the user, the money transfer and/or debitand/or the transmission of the transfer or debit transaction receipt canadvantageously be effected by a remote data connection. This canfacilitate the method according to the invention very much. Furthermore,by using a remote data connection, the code can very quickly betransmitted to the user. The remote data connection can, for example, beeffected through a computer network and/or an automatic telephoneinterface, for example an interactive voice response system.

In an advantageous embodiment of the method according to the invention,the code consists of at least two partial codes, whereby one code isbeing transmitted by the method according to the invention as anadditional information with the transfer and/or debit and anotherpartial code is being transmitted to the user by an alternatetransmission method. This embodiment has the advantage that a thirdparty, even in the case of getting access to the code transmitted by themethod according to the invention, is being prevented from using itfraudulently, because the resulting code effectively used later consistsof the at least two partial codes, Even if the other partial code isbeing transmitted by a relatively insecure method, such as the internetor the telephone, the probability of a third party getting access toboth partial codes is very low. This embodiment thus provides a verysecure code transmission method.

Advantageously, the identification data transmitted by the user to theallocation unit comprise at least the user's full name. Furthermore, thefinancial account identifier information transmitted by the user to thecode allocation unit comprises at least the bank account number orcredit card number and/or the name or bank code number of the financialinstitution or the credit card company.

Furthermore, the financial institution can also forward a transfer ordebit transaction receipt to the allocation unit. Thus, through thereceipts of the financial institution, not only the user, but also theparty operating the code allocation unit will be advantageously providedwith a means of proving the code transmission. This embodiment of themethod according to the invention is almost equivalent to a registeredletter with delivery confirmation, avoiding the drawbacks associatedwith sending letters.

Embodiments of the method according to the invention will be describedin detail with references to the enclosed FIGURE.

The FIGURE schematically depicts a system for conducting the methodaccording to the invention.

Reference number 1 refers to an input unit of a user intending to obtaina code from a company, for example, in order to use the company'sservices. The input unit can, for example, be a computer or a telephonesystem. The company features a code allocation unit 3. This codeallocation unit 3 can, for example, be the company's central computer ora system of connected single computers. The code to be allocated can beany information submitted to a user in order to enable him to identifyhimself or herself to any party. The code can be a permanent personalaccess code such as a PIN. Furthermore, the code can be a one-time codesuch as a TAN (transaction number).

The user's input unit 1 and the company's allocation unit 3 areconnected by some form of remote data connection 2. The remote dataconnection can, for example, be a computer network such as the internetor an automatic telephone interface such as an interactive voiceresponse system. The user transmits his or her financial accountidentifier information through the input unit 1 via the remote dataconnection 2 to the code allocation unit 3. In this context, the term“financial account identifier information” refers to any collection ofdata that allow to establish some form of financial transaction with theuser. The term “financial institution” generally refers to an entitythrough which financial transactions can be conducted. Obviously, theterm also comprises a network of single institutions, for example theuser's bank, the company's bank and for example, the ACH (AutomatedClearing House). The financial transactions can thus be effected, forexample, through an account with a financial institution, such as a bankor savings bank, or a credit card account. The financial accountidentifier information provided by the user comprises of his or her bankaccount number or credit card number and the name or bank code number ofhis or her financial institution or credit card company.

The code allocation unit 3 then transfers an amount of money to thefinancial institution specified by the user, thereby submitting thefinancial account identifier information and, if necessary, the user'sidentification data. After the new user's data have been transmitted,the money transfer can be effected automatically. Furthermore, the codeto be transmitted is being transmitted as additional information withthis transfer. The term “additional information” refers to anyinformation transmitted in association with the money transfer. Thisinformation can be transmitted in unencrypted or encrypted form,additionally to the money transfer data or contained therein.

Such transmissions can, for example, be effected in the following ways:with a money transfer to a financial institution, a payment referencecan be specified. This payment reference can indicate the code to betransmitted. Advantageously, a very small amount of money, for exampleEUR 1.00 is being transferred. Furthermore, the code to be transmittedcan be contained within the amount of money to be transferred. Forexample, if the code 1498 is to be transmitted, an amount of EUR 14.98could be transferred. The amount transferred can later be billed as anexpense to the user. The money transfer can be effected through a remotedata connection 4 between the code allocation unit 3 and the financialinstitution 5.

The financial institution 5 advantageously features a verification unitwhich verifies the money transfer data received from the code allocationunit as to whether they can be assigned to a valid financial account ofthe user. For example, it is being verified whether the account numberexists and, if applicable, whether it exists for the specified user. Inthe case of a positive validation, the financial institution 5 executesthe money transfer initiated by the allocation unit 3 and credits therespective amount of money to the users account. A receipt for the moneytransfer together with the additional information is being transmittedto the user via another connection 6, which can also be a remote dataconnection 6 such as a computer network or an automatic telephoneinterface. Furthermore, it is possible to forward the receipt to theuser by an account balance statement printer.

Additionally, the financial institution 5 can also forward a receipt forthe money transfer to the allocation unit 3 in order to provide theparty operating the code allocation 3 unit with a means of proving thecode transmission.

The method according to the invention provides an especially simple wayof transmitting a personal code to a new user. All the user has to knowis how to extract the code from the additional information associatedwith the money transfer. This can be communicated by the company issuingthe code or by another party, for example over the internet in a publicforum.

Simultaneously with the transmission, it is verified that the financialaccount identifier information is correctly specified by the user,because only by doing so will he or she be able to receive the moneytransfer. This is especially important for future payment transactionsbetween the user and the company offering services or selling goods.Furthermore, the user will receive his or her code very quickly, as thetime needed for the transmission depends only on the time needed for themoney transfer by the financial institution 5.

It is being remarked that the term “remote data connection” not onlyrefers to an online connection, but also to offline connections, as longas some form of data transfer between the respective units is effected.For example, it could also be possible to ship data storage media.

If the verification unit of the financial institution 5 yields averification result indicating that the account identifier informationsubmitted is invalid, the financial institution 5 does not carry out themoney transfer. Advantageously, this result is being transmitted to theverification and allocation unit via a remote data connection 4. In thiscase, it can thus be decided in the code allocation unit whether toinitiate another contact to the user 1, for example through the remotedata connection 2, or whether to refrain from issuing a personal code tothe respective user.

In another embodiment of the method according to the invention, the codeto be used later by the new user consists of two or more partial codes.For example, the first partial code represents the first four digits ofthe effective code and the second partial code represents the last fourdigits. The effective code could, for example, also be generated bymultiplying the two partial codes or by applying some other computationknown to the user. One partial code is being transmitted to the userusing the method according to the invention and the other partial codeor a plurality of other partial codes by an alternate transmissionmethod that may be not so secure. For example, the second partial codecan be sent over a computer network such as the internet to the user.

This embodiment of the method provides an increased level of security,because an unauthorized person, even when getting access to the partialcode transmitted by the method according to the invention, still has noinformation about the resulting code effectively used later. Theprobability of that person getting access to both or all partial codesis very low.

In another embodiment of the invention, the code transmission will beeffected by a debit rather than a transfer of a small amount of moneyfrom the financial institution specified by the new user. With thisdebit as well, the account identifier information and as additionalinformation the code to be transmitted are specified. The method used inthis embodiment of the invention corresponds to the method describedabove, whereby in each case a debit rather than a transfer is executed.

Furthermore, both a transfer and a debit of the same amount of money canbe executed simultaneously. Although this method slightly increases theexpense, however, it will have a neutral effect on the new user'saccount balance.

1. A method comprising: receiving, from a code allocation unit, using atleast one processor, a request to effect a value transfer utilizing afinancial account identifier information of a user and an access code,the access code reflecting an amount of value associated with the valuetransfer, the access code being to identify the user to a businessentity; effecting the requested value transfer; and transmitting theaccess code to the user together with a receipt for the value transfer.2. The method of claim 1, wherein the value transfer is a moneywithdrawal transaction.
 3. The method of claim 1, wherein the accesscode is equal to the amount of money associated with the value transfer.4. The method according to claim 1, wherein the value transfer is amoney deposit transaction.
 5. The method according to claim 1, whereinthe request to effect the value transfer is received via a remote dataconnection.
 6. The method according to claim 1, wherein the transmittingof the access code is by one or more of a remote data connection and anaccount balance statement printer.
 7. The method according to claim 6,wherein the remote data connection is a computer network or an automatedtelephone interface.
 8. The method according to claim 1, wherein: theaccess code comprises at least two partial codes; and a first partialcode from the at least two partial codes is to be transmitted to theuser together with the receipt for the value transfer and a secondpartial code from the at least two partial codes is to be transmitted byan alternative method to the user.
 9. The method according to claim 1,wherein the financial account identifier information comprises at leastone of a group including: data associated with a bank account number;and data associated with a credit card number of the user.
 10. Themethod according to claim 1, further comprising transmitting the receiptfor the value transfer to the allocation unit.
 11. A non-transitorymachine-readable storage medium having instruction data to cause amachine to: receive, from a code allocation unit, using at least oneprocessor, a request to effect a value transfer utilizing a financialaccount identifier information of a user and an access code, the accesscode reflecting an amount of value associated with the value transfer,the access code being to identify the user to a business entity; andtransmit the access code to the user together with a receipt for thevalue transfer.
 12. The machine-readable medium of claim 11, wherein thevalue transfer is a money withdrawal transaction.
 13. Themachine-readable medium of claim 11, wherein the access code isreflected in an amount of money associated with the value transfer. 14.The machine-readable medium according to claim 11, wherein the valuetransfer is a money deposit.
 15. The machine-readable medium accordingto claim 11, wherein the request to effect the value transfer isreceived via a remote data connection.
 16. The machine-readable mediumaccording to claim 11, wherein the transmitting of the access code is byone or more of a remote data connection and an account balance statementprinter.
 17. The machine-readable medium according to claim 11, whereinthe remote data connection is a computer network or an automatedtelephone interface.
 18. The machine-readable medium according to claim11, wherein: the access code comprises at least two partial codes; and afirst partial code from the at least two partial codes is to betransmitted to the user together with the receipt for the value transferand a second partial code from the at least two partial codes is to betransmitted by an alternative method to the user.
 19. Themachine-readable medium according to claim 11, wherein the financialaccount identifier information comprises at least one of a groupincluding: data associated with a bank account number; and dataassociated with a credit card number of the user.
 20. Themachine-readable medium according to claim 11, further comprisingtransmitting the receipt for the value transfer to the allocation unit.